Build Meb Faber’s Ivy 10 Portfolio With ETFs

Learn to build Meb Faber's Ivy 10 portfolio with ETF, see historical returns.
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What is Meb Faber’s Ivy 10 Portfolio?

Meb Faber’s Ivy 10 Portfolio can be built with 9 ETFs. It is exposed to 20% bonds, 60% equities, and 20% commodities. It is a medium-risk portfolio.

For the past 10 years, the Meb Faber’s Ivy 10 Portfolio has returned 4.34 with a standard deviation of 13.12. The dividend yield is 2.53%. The 30-year return is 7.83%. Year to date the Meb Faber’s Ivy 10 Portfolio has returned 14.99%%.

What is Meb Faber’s Ivy 10 portfolio?

Meb Faber’s Ivy 10 portfolio is an expansion of the Ivy 5 portfolio. The portfolio attempts to mirror the portfolios of large endowment funds like Yale and Harvard. The portfolio of large endowments has been heavily influenced by David Swensen of Yale.

David Swensen’s approach is to diversify into alternative asset classes like natural resources (timber), real estate, and private equity.

Meb Faber and the late Eric W. Richardson have looked over the shoulders of David Swensen and other fund managers and have constructed the Ivy Portfolio.

They present the asset allocation in their book  The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.

What is the historical return of Meb Faber’s Ivy 10 Portfolio?

Below you can see the historical performance of Meb Faber’s Ivy 10 Portfolio.

Data was last updated on October 1, 2021 at 04:21 a.m. ET

NameAsset class countYear to dateReturn in 202010 year returnCAGR since 1989 (%)Risk levelExpense ratio
Meb Faber Ivy 10 Portfolio914.99%3.984.347.8330.23%

How do the Ivy 10 portfolio compare to the best portfolios?

Below you can see the returns of the best portfolios that we have benchmarked.

NameSee PortfolioYear to dateReturn in 202010 year returnCAGR since 1989 (%)Draw Down
Premium Portfolio15.92%18.2913.8410.77-37.63%
Premium Portfolio8.30%18.118.6311.14-44.87%
Premium Portfolio13.48%19.712.8410.49-32.77%
Premium Portfolio20.78%3.198.5210.59-36.46%
Premium Portfolio20.17%3.668.6210.48-36.35%
Premium Portfolio15.18%21.0313.7810.83-37.00%
Premium Portfolio19.24%8.711.5610.65-35.26%
Premium Portfolio15.41%7.488.3910.64-37.91%
Premium Portfolio16.16%5.3610.8811.23-35.43%
Premium Portfolio20.81%3.4210.2110.47-40.85%

Asset allocation piechart for Meb Faber’s Ivy 10 Portfolio

meb-faber-ivy-10-portfolio
Here’s Meb talking about value stocks

How du you build Meb Faber’s Ivy 10 Portfolio with ETFs?

Below you can see which mutual funds or ETFs you can use to build the portfolio. They are the best-in-class funds and ETFs for this purpose. They are low-cost index funds that best capture the asset class. Read here how we selected the best funds.

Asset allocation for the Ivy 10 portfolio

  • 10.00%  US Large-Cap (VV)
  • 10.00%  US Small-Cap (VIOO)
  • 10.00%  REITs (VNQ)
  • 10.00%  International Developed Blend (VEA)
  • 10.00%  Emerging Markets (VWO)
  • 10.00%  Total US Bond Market (BND)
  • 20.00%  Commodities (DBC / GSG)
  • 10.00%  TIPS (VTIP)
  • 10.00%  International REITs (VNQI)

The letters in brackets denote the stock symbol for the recommended ETF. You can look up the symbols at your stockbroker. You can see a listing of all the ETFs we recommend on this page.

In addition to this, Meb Faber and Eric W. Richardson propose using the following ETFs:

Advantages and disadvantages of  the Ivy 10 portfolio

Advantages

  • The portfolio is simple to understand. It consists of 10 asset classes split evenly.
  • The Ivy 10 portfolios is well diversified and has plenty of chances to rebalance.
  • The portfolio is global and well diversified
  • The portfolio is constructed by Meb Faber – a respected financial quant that almost single-handedly has revived market timing.
  • The Ivy 10 portfolio nakes a bet on commodities.
  • You get a portfolio that resembles that of Yale and Harvard. David Swensen of Yale has had astonishing returns using a similar model.

Disadvantages:

  • The bet on commodities may not be desirable.
  • The inclusion of commodities makes the portfolio slightly more expensive due to the higher expense ratio of commodity ETFs.
  • The portfolio may be too heavy on hard assets such as commodities and REITs (it has 30% in total). They asset classes have done great in the past but their performance may not continue.
  • The portfolio may not be suitable for some, as the premise for the endowments holding a similar portfolio is holding the assets forever. Private investors do not have forever. Most private investors have between 5-50 years.

Resources

Go here for a rebalance excel worksheet.

Also, be sure to visit the Meb Faber site. It is a wealth of information and inspiration.

His podcast is also very good (the first episode is absolutely awesome as he runs down what investing is really about.

Suggestions for your next steps

Finding the correct portfolio is hard. Maintaining your portfolio is also daunting. If you are still in doubt about which portfolio to choose, we suggest you read our article How To Invest Money: 5 Simple Steps That Work For Anyone

If you have already committed to a portfolio – good for you! If you need help maintaining the portfolio you will find our rebalance worksheet useful. Rebalancing your portfolio lowers your risk and may provide higher returns in the long run. It is completely FREE.

You can find the rebalance worksheet in our article Here Is The Most Easy To Use Portfolio Rebalance Tool.

Rebalancing lowers your portfolio risk and may increase your returns.


If you want access to our high-performing portfolios then you need to take a look at the premium portfolios. This is a paid product that gives you the 59 best-performing portfolios since 1989. The portfolios represent a great opportunity for you to have a shot at increasing the returns of your portfolio.

Portfolioeinstein Premium Portfolios

Related questions

What is the Meb Faber’s Ivy 5 Portfolio?

The Meb Faber’s Ivy 5 Portfolio is the little brother of Meb Faber’s Ivy 10 Portfolio. It consists of just 5 ETFs. You can find it here.

What is the Trinity portfolio?

The trinity portfolio is a mixed strategy portfolio by Meb Faber. It consists of exposure to buy and hold, value stocks, and trend following. You can read about the Trinity portfolio here. It is also available as an ETF under the ticker symbol TRTY.

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